Green bonds: New study shows extraordinary growth and signals potential in financing Europe’s climate and environment goals
A study released by the Commission today shows that green bonds have enjoyed extraordinary growth, since they were first issued in 2007. The study on the potential and functioning of green bond markets also identifies key bottlenecks and measures to overcome them so they can fulfil their huge potential. The results come out two days after the Commission’s Clean Energy for All Europeanspackage which finds that an extra EUR 177 billion is needed annually from 2021 onwards to reach the 2030 climate and energy goals. New, innovative funding and investment mechanisms will be essential to achieve this. Green bonds will be on the agenda of the High Level Expert Groupon sustainable finance that the Commission decided to establish on 28 October 2016. Vice-President Valdis Dombrovskis said: “Promoting long-term and green finance is one of the priorities of the Capital Markets Union Action Plan. Green bonds are an important instrument to raise capital market finance for environmentally-friendly and more sustainable investments. The new High Level Expert Group on sustainable finance will help define steps towards greener capital markets.” Commissioner Karmenu Vella added: “EU has positioned itself well, to allow companies and municipalities to be among the frontrunners in the expanding green bond market. We must double our efforts to eliminate bottlenecks and allow green bonds to help on investment needed to fulfil our energy and climate commitments.” European and Chinese issuers make up the largest share of the climate-aligned bonds market globally.